As you maybe know, NFT stands for non-fungible token, when something is fungible, it can be exchanged for something of equal or similar value, non-fungible makes the asset unique and therefore can not be exchanged. These NFTs are digital assets that represent real world items such as music, art, videos, or in-game items. They are bought and sold online, most commonly with cryptocurrency. Below we will look at understanding what the different factors are that can make an NFT valuable or an NFT collection successful.
Before we start, let’s look at some NFTs that have had record selling amounts:
The question on everyone’s mind is what made these specific digital assets valuable? Because the NFT is a one-of-a kind definitive proof of ownership of a digital asset, a token on the blockchain. You can look at it like real world collectible football cards, limited-edition clothing collections, one-of-a-kind art works like the Mona Lisa, etc. The value depends on the limited supply, if it’s a collectible, the benefits the consumer receives by owning a specific NFT.
An NFTs project’s greatest strength is its community. Like with any product, targeting the right audience is key as well as marketing the right way. The value of the NFT will increase using specific marketing strategies that generate consumer interest and loyalty. Another factor through which to make your NFT valuable is generating hype. This can be done for example marketing exclusive access, such as a big brands like Adidas has done.
The success of an NFT collection depends on factors mentioned above as well as how much utility it gives to the user and whether the NFT has the potential of being resold and continue to maintain its value in the future. Some ways to achieve a continuous success is through phased rollouts, where anticipation is built amongst potential and existing customers.
The hype around digital assets is most likely going to grow over time, building one’s community and marketing strategy that fits to that community will be key in making your NFT valuable.
Simply put, its uniqueness. The fact that they are authentically verifiable as a non-fungible asset.
With reference to art collections for example, the definitive proof of ownership makes it a valuable asset. The community you build as a brand or business and what you offer your community in terms of marketing is what will make an NFT collection valuable.
If an NFT is deemed to be rare or hard to buy, then it becomes valuable to the community. If you own a part of that then your NFT is valuable.